Andrea has had a savings account for ten years. She noticed over the last two years that the interest rates on her savings accou
nt went up in the first year and down in the second year. Which of the following budget scenarios best explains this transition? A) a budget surplus two years in a row
B) first a balanced budget then a deficit
C) first a balanced budget then a budget surplus
D) first and unbalanced budget then a balanced budget
Answer: the correct answer is B) first a balanced budget then a deficit.
Explanation: If the interest is high I will have more money and if it is down I will have less money that correspond to a balanced budget and a deficit (lack of money).
